The Evolution of Management Thinking PDF

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Summary of chapter 2 book Intoduction to Management by Richard L. Daft...

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Chapter 2 : The Evolution of Management Thinking Management by : Richard L. Daft

Management and Organization There are some forces, that have influenced organization and the practice of management. 1. Social Forces are aspects of a culture that guide and influence the relationship among the people. Usually this kind of force known as social contract that unwritten and common rules that do exist among the people, and between employees and management. 2. Political Forces are influence of political and legal institutions on people and organization.This belogs to basic assumption underlying the poltical system, like desirability of self-government, property rights, contarct rights, the definition of justice and the dete 3. Economic Forces are the availibility, production, and distribution of the resources in a society.

Classical Perspective The first organization developed by Sumerians and Egyptians. The formal study of management recenty known as Classical Perspective. This perspective emerged during the nineteenth and early tweentieth centuries. The factory system that began to appear in the 1800s face many problems, such as tooling the plants, organizing managerial structure, training employees ( who cant speak English ), scheduling complex manufacturing operations, and dealing with increased labor disatissfaction and resulting strikes. And then because of many complex problems, then there was a demand of a new approach to coordination and control, and a “newsub-species of economic man- the salaried manager” and it emerged the increasing of professional managers in United States from around 161,000 to more than 1 million. Then the professional managers started to develop something that now likely known as Classical Perspective.This Classical Perspective contains of three subfields, there are : 1. Scientific Management is scientifically determined jobs and management practices as the way improve efficiency and labor producticityIn the late 1800s, there as a young engineer, Frederick Winslow Taylor said that improving productivity meant that management itself would have to change that could be determined only by scientific study, and since then scientific management emerged.This scientific managament has done increased productivity accross all industries until today. Example : Supermarket chains such as Meijer Inc, and Hannaford use computeized labor waste elimination systems based on scientific management principles. 2. Bureaucratic Management is a systematic approach developed in Europe that looked at the organization as a whole. This concept was invented by Max Weber, a German theorist. In the late 1800s, Europian organizations were managed personally so many employees were loyal to a single individual than to the organziation or the organization mission

itself. So Max Weber envisioned organization with rational based, that was called a bureaucracy. It means that rational-based organization would be more efficient and adapatable to change because contiunity is relted to formal structure and positions rather than to a particular person.Not only about that, but also the employee selection and advancement based on competence and technical qualifications. The term bureaucracy has taken on a negative meaning in today’s organization and is associated with endless rules and red tape.

3. Administrative Principles is perspective which focused on the total organization. The one who gave major contributes to this approach was henry Fayol, a French mining engineer. Fayol wrote down his concepts on administrations and discussed 14 general principles of management, several are part of management philosophy today, there are : a. Unity of Command. Each subordinate receives orders from one and only one superior b. Division of work. Managerial work and technical work to specialization to produce more n and better work with the same amount of effort. c. Unity of direction. Similar activities in an organization should be grouped together under nnone manager d. Scalar chain A chain of authority extends from the top to the bottom of the organization. Fayol also identified five basicfunctions of management. There are : a. Planning b. Organizing c. Commanding d. Coordinating e. Controlling

Humanistic Perspective A management perspective that emerged near the late nineteenth century and emphasized understanding human behavior, needs, and attitudes in workplace. Here are the subfields that based on the humanistic perspective : 1. Human Relations Movement A movement in management that emphasizes satisfaction of employees' basic needs as the key to increased worker productivity. In addition, worker productivity increased partly as a result of the increased feelings of importance and group employees felt by virtue of being selected for the important project. 2. Human Resources Perspective Human resources perspective means a management perspective that suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential. 3. Behavioral Sciences Approach

Behavioral sciences approach is a subfield of the humanistic management perspective that applies social science in an organizational context, drawing from economics, psychology, sociology, and other disciplines.

Management Science Perspective Management scince perspective is a management perspective that emerged after World War II, and applied mathematics, statistics, and other quantitative techniques to managerial problems. And there are three subsets of the management science perspective : 1. Operation Research It consists of mathematical model building and other applications of quantitative techniques to managerial problems. 2. Operation Management Is management that spesializes in the physical production of goods or services. Some commonly used methods are forecasting, inventory modeling, linear and nonlinear programming, queuing theory, scheduling, simulation, and brrak-even analysis. 3. Information Technology (IT) Information technology within organizations evolved to include intranets and extranets, as well as various software program that help managers estimate costs, plan and track production, manage projects, allocate resources, or schedule employees. It so effective to solve complex organizational problems.

Recent Historical Trends The post–World War II period saw the rise of new concepts, along with a continued strong interest in the human aspect of managing, such as team and group dynamics and other ideas that relate to the humanistic perspective. Three new concepts that appeared were systems thinking, the contingency view, and total quality management. 1. Systems Thinking Systems thinking is the ability to see both the distinct elements of a system or situation and the complex and changing interaction among those elements. A system is a set of interrelated parts that function as a whole to achive a common purpose. Subsystems are parts of a system, such as an organization, that depend on one another. The concept of synergy says that the whole is greater than the sum of its parts.The organization must be managed as a whole. When managers think systemically and understand sub-system interdependence and synergy, they can get a better handle on managing in a complex environment. Systems thinking enables managers to look for patterns of movement over time and focus on the qualities of rhythm,flow,direction,shape, and networks of relationships that accomplish the performance of the whole. An important element of system thinking is to discern circle of causality. Understanding the circle of causality will help the manager to make good decisions.

2. Contingency View The contingency view tells us that what works in one setting might not work in another. It means that one thing depends on other things and a manager’s response to a situation depends on identifying key contingencies in an organizational situation. When managers learn to idetify important patterns and characteristics of their organizations, they can fit solutions to those characteristics.

3. Total Quality Management Total Quality Management focuses on managing the total organization to deliver to customers. Four significant elements of quality management are, 1. Employee involvement means that achieving better quality requires companywide participation in quality control. 2. Focus on the customer means all employees should focus on the customers so the companies can easily find out what customers want and try to meet their needs and expectations. 3. Benchmarking refers to a process whereby companies find out how others do something better than they do and try to imitate or improve on it. 4. Continuous improvement is the implementation of small, incremental improvements in all areas of the organization on an ongoing basis.

Innovative Management Thinking For Turbulent Times Nowadays,innovative concepts continue to emerge to address management challenges in today’s turbulent world.Organizations experiment with new ways of managing that more adequately respond to the demands of today’s enviromental and customers.Two recent innovations in management include shift to learning organizations and managing the technology-driven workplace.

1.The Learning Organizations One of the toughest challenges for managers today is to get people focused on adaptive change to meet the demands and rapidly changing environment.Thus,they require that people throughout the company think in new ways and learn new values and attitudes.These needs demand a new

approach to management and a new kind of organization.A concept of Learning Organization came out from Peter Sange’s book.It says that The Learning Organization can be defined as one in which everyone is engaged in identifying and solving problems,enabling the organization to continuously experiment,change,and improve,thus increasing its capacity to grow,learn,and achieve its purpose.In the learning organization all employees look for problems and also solve them.Today’s best managers know that sustained competitive advantage can come only by developing the learning capacity of everyone in the organization. 2. Managing The Technology-Driven Workplace The shift to the learning organization goes hand-in-hand with the current transition to a technology-driven workplace.Today,many companies are using technology to keep in touch with customers and collaborate with other organizations on an unprecedented scale. Supply Chain Management Supply Chain Management refers to managing the sequence of suppliers and purchasers,covering all stages of processing from obtaining raw materials to distributing finished goods to consumers. A supply chain is a network of multiple business and individuals that are connected through the flow of products and services. Customer Relationship Management Customer Relationship Management (CRM) system use the latest information technology to keep in close touch with customers and to collect and manage large amount of data.Meeting customer needs and desires is a primary goal for organizations,and using CRM to give customers what they really want provides a tremendous boost to customer service and satisfaction. Outsourcing Information Technology has also contributed to the rapid growth of outsourcing,which means contracting out selected functions or activites to other organizations that can do the work more cost efficiently.Outsourcing,like supply chain management and CRM,requires that managers not only be technologically savvy but they learn to manage a complex web of relationships....